For the fourth quarter of 2004, Ctrip.com (CTRP) reported net revenues of US$11.9 million, representing a 46% increase from the same period in 2003 and a 9% increase from the third quarter of 2004.

For the full year ended December 31, 2004, net revenues were CNY333.8 (US$40.3 million) compared to CNY173.1 million (US$20.9 million) in 2003, which were adversely affected by SARS.

Hotel reservation revenues totaled CNY78.1 million (US$9.4 million) in the fourth quarter of 2004, representing a 35% increase from the same period in 2003 and a 5% increase from the third quarter of 2004. The total number of hotel room nights booked was approximately 1.19 million for the fourth quarter of 2004, compared to approximately 880,000 room nights for the same period in 2003 and approximately 1.13 million room nights in the third quarter of 2004.

For the full year ended December 31, 2004, hotel reservation revenues were CNY276 million (US$33.4 million), an 80% increase from 2003. The hotel reservation revenues accounted for 78% of the total revenues in 2004, compared to 84% in 2003. The total number of hotel room nights booked was approximately 4.2 million in 2004, compared to approximately 2.4 million room nights booked in 2003.

Air ticket booking revenues for the fourth quarter of 2004 were CNY21.7 million (US$2.6 million), representing a 151% increase from the same period in 2003 and a 23% increase from the previous quarter of 2004. The total number of air tickets sold in the fourth quarter of 2004 was approximately 540,000, compared to approximately 240,000 for the same period in 2003 and approximately 490,000 air tickets sold in the third quarter of 2004.

For the full year ended December 31, 2004, air ticket booking revenues were CNY63.0 million (US$7.6million), a 210% increase from 2003. The air ticket booking revenues accounted for 18% of the total revenues in 2004, compared to 11% in 2003. The total number of air tickets sold was approximately 1.7 million in 2004, compared to approximately 610,000 in 2003.

Packaged tour revenues for the fourth quarter of 2004 were CNY3.4 million (US$412,090), up 12% from the same period in 2003 and up 15% from the previous quarter of 2004.

For the full year ended December 31, 2004, packaged tour revenues were CNY10.5 million (US$1.3 million), a 119% increase from 2003. Packaged tour revenues remained at 3% of the total revenues from 2003 to 2004.

Gross margin was 84% in the fourth quarter of 2004, compared to 83% for the same period in 2003. Gross margin decreased from 86% in the third quarter of 2004, largely due to higher cost of services associated with year-end discretionary bonuses as determined in the fourth quarter of 2004. For the full year, the gross margin remained stable at 85% in 2004.

Operating expenses for the fourth quarter of 2004 were CNY50.1 million (US$6.0 million), an increase of 47% from the same period in 2003. The operating expenses increased by 34% from the previous quarter in 2004, partly due to the year-end discretionary bonuses as determined in the fourth quarter of 2004 and increase in professional service fees.

For the full year ended December 31, 2004, operating expenses were CNY149.7 million (US$18.1 million), a 67% increase from 2003.

Operating income for the fourth quarter of 2004 was CNY33.0 million (US$4.0 million), an increase of 49% from the same period in 2003. It decreased by 19% from the third quarter of 2004 due to higher operating expenses incurred in the fourth quarter of 2004.

For the full year ended December 31, 2004, operating income was CNY135.7 million (US$16.4 million), a 134% increase from CNY58.1 million in 2003.

Operating margin remained at 33% in the fourth quarter of 2004, compared to the same period in 2003. Operating margin decreased from 45% in the third quarter of 2004, partly due to higher operating expenses associated with year- end discretionary bonuses as determined in the fourth quarter and increase in professional service fees. For the full year, operating margin was 41% in 2004, up significantly from 34% in 2003.

Net income for the fourth quarter was CNY41.6 million (US$5.0 million), representing an increase of 69% from the same period in 2003 and 9% from the previous quarter of 2004. For the fourth quarter, the diluted earnings per ADS were CNY2.60 (US$0.31) and per ordinary share were CNY1.30 (US$0.16), respectively.

For the full year ended December 31, 2004, net income was CNY133.1 million (US$16.1 million), representing a 147% increase from 2003. For the full year, the diluted earnings per ADS were CNY8.46 (US$1.02) and per ordinary share were CNY4.23 (US$0.51), respectively.

Net margin was 42% in the fourth quarter of 2004, up significantly from 37% in the same period in 2003. Net margin remained flat against the previous quarter of 2004, as the lower operating income was partly offset by the preferential tax treatment for a subsidiary in Shanghai in November 2004. Net margin was 40% for the full year 2004, up significantly from 31% in 2003.

Ctrip Travel Information Technology (Shanghai) Co., Ltd ("Ctrip Travel Information"), one of Ctrip's wholly-owned subsidiaries, historically enjoyed a preferential income tax rate of 15% as it is registered in Pudong New District, Shanghai. During the fourth quarter of 2004, Ctrip Travel Information obtained approval from the relevant tax bureau for full exemption of income tax for 2004 and a 50% reduction of the income tax statutory rate for the period from 2005 to 2007. Accordingly, income tax previously paid for 2004 at the 15% rate was refunded and the amount has been reflected as a tax benefit for the fourth quarter of 2004.

Cash flow from operating activities was CNY57.5 million (US$7.0 million) in the fourth quarter of 2004, compared to CNY36.5 million (US$4.4 million) for the same period in 2003. Cash flow from operating activities was CNY56.7 million (US$6.8 million) in the previous quarter of 2004.

For the full year ended December 31, 2004, cash flow from operating activities was CNY161.5 million (US$19.5 million), compared to CNY74.1 million in 2003. As of December 31, 2004, the cash balance was CNY615.9 million (US$74.4 million), compared to CNY472 (US$57.0 million) as of December 31, 2003.